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  1. High-Level Seminar on China-ASEAN Relations23-24 September 2006 Beijing, Chinaorganized byEast Asian Studies CenterChina Foreign Affairs University

  2. Panel II: Issues in Furthering China-ASEAN Partnership Presentation by Pang Eng Fong Singapore Management University

  3. Context Global Issues, Regional Integration and National Imperatives

  4. China-ASEAN Relations • Long history of interaction • Concentrated in original ASEAN-5 • Rapid two-way trade growth – est. $100 billion in 2006; ASEAN accounts for 7% of China’s exports and 11% for imports • Since 2002, substantive cooperation in many areas

  5. China’s Transformation: Impact on Asia/ASEAN • Growth engine for East Asia and ASEAN • Export and investment opportunities for Northeast Asia • Competitive pressures on ASEAN; competition in third-country markets, price competition in home markets

  6. China’s Growth and ASEAN • Spurs market-driven integration • Benefits all but unequally • Creates adjustment issues for all • Helps foster stronger sense of regional interdependence and community

  7. China’s Transformation and ASEAN • New geo-political and geo-economic environment • ASEAN must adapt but cannot choose sides (bet US and China, bet China and Japan) • China needs excellent ties with ASEAN as example

  8. China-ASEAN FTA • China-ASEAN market-sharing FTA a historic move • FTA changes regional production patterns, makes China-ASEAN economies complementary • More China FDI in ASEAN • More ASEAN commodities/agricultural products for China • ASEAN’s “early harvests”

  9. Moving Forward (1) • Strengthen economic partnership (ACFTA as benchmark, going beyond goods) • Expand high-level exchanges and people-to-people contacts • Address image/reputational matters (China/ASEAN centers?) • Build confidence on security issues

  10. Moving Forward (2) • Use multilateral processes for regional issues • Work together on transnational issues • Promote an East Asian Community • Reform to compete and cooperate better

  11. Thank you!